Your to-do list for after you win Powerball

Nov. 28, 2012
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by Rick Jervis, USA TODAY

by Rick Jervis, USA TODAY

NEW ORLEANS -- You bought a ticket. You've checked and rechecked it against the winning numbers. And checked them again. This is not a dream: You've won the $550 million Powerball jackpot. You're a multi-multimillionaire.

Now what?

Buildup to the record $550 million Powerball jackpot Wednesday has been intense, as lottery hopefuls snatch up tickets and map out what they'll do with the winnings. Equally intense has been questions on how and when to claim the prize, says Kelly Spell, a spokeswoman with the Louisiana Lottery Corporation, which operates the state's Powerball drawings.

"People are excited," says Spell, fielding calls Wednesday at the group's Baton Rouge office. "A lot of them want to know what to do with that winning ticket."

After regaining your breath and calling a few select friends with the good news, here are the top five things to do if you win:

â?¢ Seek legal help. Winners have 180 days from the date of the drawing to claim their prize. Lottery officials recommend using that time to find a good lawyer and/or accountant to help navigate all the federal, state and other possible tax obligations attached to the winnings. Spell notes that the federal government takes one-fourth of the total winnings. Louisiana takes 5%.

â?¢ Sign and verify. If you haven't already, sign the back of the ticket immediately, Spell says. "Single most important thing you can do," she says. "That's the best way we can determine who owns it." Winning tickets can then be verified at local retailers or at any state lottery office, she says.

â?¢ Claim prize. Large winnings such as the Powerball jackpot need to be claimed in person at the headquarters of the state lottery body that runs Powerball. But don't rush in: the jackpot money isn't available until 15 calendar days after drawing, Spell says.

â?¢ Annual payments vs. lump sum. One of the biggest decisions ticketholders will make is whether to take the jackpot as a lump sum (minus taxes) or in annual payments over 30 years. Cash value for a $550 million jackpot is actually $360.2 million, Spell says. After taxes, a single winner will walk away with a check totaling approximately $252 million. Annual payouts increase about 4% each year until the entire $550 million is paid, she says. Taxes are still owed on the annual payments.

â?¢ Expect attention. Large winnings usually come with a crush of media attention, Spell says. Louisiana Lottery Corporation doesn't act as the winning ticketholders' press agent but could help them manage the intense publicity with organized news conferences and press releases. Some past winners have reveled in media interviews. Others sent their lawyers, she says. "You never know how your life will change," Spell says. "It's exciting."